Modified Power law Inflation: solution to the graceful exit problem and improvement of dark energy models

We study power law inflation (PLI) with a monomial potential and find a novel exact solution. It is well known that conventional PLI with exponential potential is inconsistent with the Planck data. Unlike the standard PLI, present model does not suffer from graceful exit problem and it agrees fairly well with recent observations. We have calculated the spectral index and the tensor-to-scalar ratio which are in very good agreement with recent observational data and also comparable with other modified inflationary models. A technique has been used which shows that the large cosmological constant reduces with expansion of the Universe in case of the power law inflation. The coupling of the inflaton with gravitation is the main point in this technique. The basic assumption here is that the two metric tensors in the gravitational and the inflaton parts correspond to different conformal frames which is in contradiction with the conventional power law inflation where the inflaton directly coupled with the background metric tensor. This fact has direct application to different dark energy models and assisted quintessence theory

Basel II and bank lending behavior: some likely implications for monetary policy

The new Basel accord is slated to come into effect in India around 2007 raising the question of how the revised standards will influence bank behaviour. Using a simple theoretical model, it is shown that the revised accord will result in asymmetric differences in the efficacy of monetary policy in influencing bank lending. This will, however, depend on a number of factors, including whether banks are constrained by the risk-based capital standards, the credit quality of bank assets and the relative liquidity of banks’ balance sheets. The basic model is empirically explored using data on Indian commercial banks for the period 1996-2004. The analysis indicates that the effect of a contractionary monetary policy will be significantly mitigated provided the proportion of unconstrained to constrained banks in the system is significantly high.banking; monetary policy; India